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sattari [20]
3 years ago
7

Critical analysis Q16 Suppose that the Federal Reserve purchases a bond for $100,000 from Reggie Rich, who deposits the proceeds

in the Manufacturer’s National Bank. Initially, as a result of this bond purchase, the money supply will by. Suppose the required reserve ratio is 25%. As the result of Rich’s deposit, Manufacturer’s Bank will be able to extendin additional loans. As a result of this purchase by the Fed, the maximum increase in the quantity of checkable deposits that could result throughout the entire banking system is
Business
1 answer:
kkurt [141]3 years ago
3 0

Answer:

Explanation:

• Initially, As a result of the bond purchase, money supply will increase by $100000.

The reason for the increase in money supply by $100000 is because the federal reserve bought bond of $100000 from Riggie Rich. This is an expansionary policy which will lead to more money in supply.

• As a result of Rich's deposits, the bank will able to give $90000 more in additional loans.

The increase in the additional loans will be calculated by removing the reserve required ratio from the deposit.

= $100000 - (10% × $100000)

= $100000 - $10000

= $90000

• As a result of the purchase by the Federal reserve, the maximum increase in quantity of checkable deposits which could result throughtout the entire banking system will be $1000000.

The increase in checkable deposits will be the change in reserve multiplied by 1/RRR. This will be:

= $100000 x 1/10%

= $100000 × 1/0.1

= $100000 x 10

= $1000000

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Answer:

1) B) I'll be sharing some special sales tips with you tomorrow that will make your job easier.

2) B) Your goal for this month is to sell 10% more lattes, and you will receive a reward if you reach it.

3) C) Two days off with pay

Explanation:

1) The <em>E->P expectancy</em> is related to the concept of investing effort into something that you know will lead to the desired performance. It is the part of the expectancy theory that is not related to rewards.

In this example. the goal (task) is to increase sales. The E->P expectancy is the probability that Ethan's efforts will result in the desired performance (increased sales). By giving sales tips to Ethan, he will get more self-esteem and know-how and believe that his effort will in fact result in the desired outcome.

Although this is an overlooked part of the expectancy theory sometimes, it is crucial. Despite the appeal of a particular reward, an employee may not get increased motivation if he/she thinks that the task itself cannot be completed.

2) The <em>P->O expectancy</em> is related to rewards, and it states that employees will get motivated if the desired performance will result in a reward. In this case, Emma's putting the goal (10% increased sales) in direct relation with a reward.

3) Since the Motivation Report states that Ethan is motivated by time off, two days off with pay is the most appealing reward for him. The money bonus is more appropriate for Jon, while a choice of work assignments is better for Blair.

6 0
3 years ago
A company issues a ten-year bond at par with a coupon rate of 6.5% paid semi-annually. The YTM at the beginning of the third yea
Montano1993 [528]

Answer:

$880.31

Explanation:

For computing the new price of the bond we need to apply the present value formula i.e to be shown in the attachment

Given that,  

Assuming Future value = $1,000

Rate of interest = 8.6%  ÷ 2 = 4.3%

NPER = 8 years  × 2 =

PMT = $1,000 × 6.5% ÷ 2  = $32.5

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

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Suppose you're in charge of establishing economic policy for this small island country. Which of the following policies would le
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Answer:

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Explanation:

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3 years ago
Which of the following institutions makes up the largest part of the Federal Reserve System organization
vlada-n [284]

The Correct answer choice for question 1 is : <u>Federal Reserve Banks</u>

<h3>What is Federal Reserve Banks?</h3>

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                                                   AND

The Correct answer choice for question 2 is : <u>Buy government securities</u>

<h3>What is Recession?</h3>

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Therefore, we can conclude that the correct option of 1 is (B) and 2 is (A).

Your question is incomplete, but most probably your full question was:

1. Which of the following institutions makes up the largest part of the Federal Reserve System organization?

A. Board of Governors

B. Federal Free Market Committee

C. Federal Reserve Banks

D. Member banks and other depository institutions

2. If the United States falls into a recession, which action would the Federal Reserve take to encourage employment?

A. Buy government securities

B. Increase reserve requirements

C. Raise federal funds and prime rates

D. Sell government securities

Learn more about Federal Reserve System on:

brainly.com/question/999538

#SPJ4

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LiRa [457]

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